Setting up a company in Dubai has become more attractive than ever, especially with recent reforms allowing 100% foreign ownership in many business sectors. If you’re wondering how to register a company in Dubai without a local sponsor, this guide will walk you through every step in clear detail.
Understanding Foreign Ownership Laws in Dubai
The UAE government introduced changes to company laws, making it easier for foreign investors to operate independently. These changes now allow foreigners to own a company in Dubai without a local sponsor, depending on the nature of the business and the chosen location.
What is a Local Sponsor in Dubai?
A local sponsor is an Emirati individual or company that previously held 51% ownership in a mainland company set up by a foreigner. This requirement applied mostly to Mainland business setup in Dubai, while Free Zone companies already allowed full foreign ownership.
Business Structures That Don’t Require a Local Sponsor
Today, entrepreneurs can choose from a few different company structures that don’t require a local sponsor:
Free Zone Company
Setting up in a Free Zone in Dubai lets you retain 100% ownership. It’s a cost-effective and fast way to establish a business, with minimal paperwork.
Mainland Company with Full Ownership
Thanks to the amended UAE Commercial Companies Law, many Mainland activities no longer need a local Emirati partner. These apply to various commercial, industrial, and professional activities.
Benefits of Registering Without a Local Sponsor
Choosing to register without a local sponsor offers both financial and strategic benefits.
100% Business Control
You can fully manage operations, profits, and decisions without any third-party involvement.
Greater Privacy and Independence
With no sponsor, your business remains completely in your name, giving you full legal and operational control.
Faster Business Decisions
Less dependence on external approvals helps you respond to market changes more efficiently.
Step-by-Step Guide to Registering a Company Without a Local Sponsor in Dubai
Here’s a detailed breakdown of the process:
Choose the Right Business Activity
The type of business activity you select will determine if you’re eligible for full ownership under the latest regulations. Some sectors like oil, gas, and banking still require local involvement.
Decide on the Business Jurisdiction
Your options include:
- Dubai Mainland
- Dubai Free Zone
- Dubai Offshore
Each has its pros and cons. For full ownership without a local sponsor, Free Zones are the most straightforward. Mainland is now an option for many sectors as well.
Select a Business Name
Follow the Dubai Economic Department (DED) guidelines when selecting a trade name. Avoid religious terms, political references, or any offensive language.
Apply for Initial Approval
You must get initial approval from the Department of Economic Development (DED) or your chosen Free Zone Authority.
Draft the Memorandum of Association (MOA)
If you are setting up a Mainland company, you’ll need to prepare the MOA in line with your new structure—without a local sponsor.
Lease an Office Space
Depending on the jurisdiction, you may need to lease a physical office or opt for a Flexi-desk in a Free Zone.
Final Submission and Licensing
Submit all your documents and approvals. Once approved, you will receive your business license in Dubai.
Legal Requirements for 100% Foreign Ownership
To proceed without a local sponsor, you must comply with:
- Eligible business activities
- Capital requirements (if any)
- Legal structure approval
- Ownership regulations based on nationality
Popular Free Zones That Allow Full Ownership
Dubai Multi Commodities Centre (DMCC)
Known for trade and commodities businesses, DMCC is one of the most popular Free Zones.
Dubai Internet City (DIC)
Ideal for IT and software companies, DIC allows 100% foreign ownership and quick setup.
Dubai Airport Free Zone (DAFZA)
Highly suited for logistics and trading companies.
Mainland Activities Eligible for Full Ownership
Many professional and commercial sectors now fall under this reform, including:
- E-commerce
- Consultancy
- Marketing
- Real estate brokerage
- Manufacturing (in select categories)
Documents Required to Register Without a Local Sponsor
You’ll need:
- Passport copies
- Visa (if in UAE)
- Business plan (for some activities)
- Trade name reservation certificate
- Initial approval certificate
- Office lease agreement
Costs Involved in Setting Up a Business Without a Local Sponsor
Depending on jurisdiction and activity, expect costs for:
- License fees
- Office rent
- Registration charges
- Visa quotas
- Government approvals
Setting up in a Free Zone is generally cheaper and more straightforward than in the Mainland.
Risks and Considerations
Although full ownership is allowed, consult a business setup advisor to ensure you’re in compliance. Each business type has its own set of rules, and not every activity qualifies under the 100% foreign ownership rule.
Taxation for Fully Owned Foreign Companies
Companies may be subject to corporate tax, VAT, or other regulatory requirements based on their annual turnover and business activity.
Can You Convert an Existing Business to Full Ownership?
Yes, existing Mainland companies can apply for ownership restructuring. You’ll need to follow a formal process to remove a local sponsor and update your legal structure.
Conclusion
Registering a company in Dubai without a local sponsor has never been more possible or practical. Whether you choose a Free Zone or a Mainland setup, today’s legal framework makes business setup in Dubai easier and more attractive for foreign investors. However, working with professionals ensures your application is smooth, compliant, and successful.
FAQs
Can I own 100% of a Mainland company in Dubai?
Yes, many commercial and professional activities now allow 100% foreign ownership in the Mainland without needing a local sponsor.
Which Free Zone is best for foreign investors?
DMCC, DAFZA, and Dubai Internet City are popular choices for international investors seeking full ownership and global market access.
What is the cost of registering a company in Dubai without a sponsor?
Costs vary based on the business activity, Free Zone or Mainland location, and office space. On average, expect AED 12,000–25,000 for a Free Zone setup.
Can I start a company in Dubai without being a resident?
Yes, non-residents can register companies in Dubai, especially in Free Zones. However, you’ll need to enter the UAE for visa stamping if required.
Do I need office space to start a company in Dubai?
Yes. Free Zones offer Flexi-desks or virtual offices, while Mainland setups require physical office space.
Is it better to start in a Free Zone or the Mainland?
For businesses targeting UAE clients, the Mainland is better. For international trade and cost-effectiveness, Free Zones are ideal.
